Homework Help is Here – Start Your Trial Now!
Business
Accounting
Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May: 1. Received cash from owner as additional investment, $55,000. 2. Paid creditors on account, $7,000. 3. Billed customers for services on account, $2,565 4. Received cash from customers on account, $8,450. 5. Paid cash to owner for personal use, $2,500 6. Received the utility bill, $160, to be paid next month. Indicate the effect of each transaction on the accounting equation by: 1. Accounting equation element type: (A) assets, (L) liabilities, (OE) owner's equity, (R) revenue, and (E) expense 2. Name of accounting equation element. 3. The amount of the transaction. 4. Indicate the direction of change in the account that is affected. Note: Each transaction has two entries. Enter all amounts as positive numbers. Entry Entry Accounting Accounting Name of Name of Equation Increase or Equation Increase or Accounting Accounting Element Type Element Type Amount Decrease Amount Decrease Equation Element Equation Element (1) (3) (4) (1) (3) (4) (2) (2) Simpson Auto Body Repair purchased $19,202 of Machinery. The company paid $3,819 in cash at the time of the purchase and the remainder was purchased on account to be paid in four monthly installments. a. How will the purchase affect the accounting equation? liabilities by $ total assets by a net amount of $ and b. How will the payment of the first monthly installment affect the accounting equation (ignore interest)? assets by $ liabilities by $ and

Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May: 1. Received cash from owner as additional investment, $55,000. 2. Paid creditors on account, $7,000. 3. Billed customers for services on account, $2,565 4. Received cash from customers on account, $8,450. 5. Paid cash to owner for personal use, $2,500 6. Received the utility bill, $160, to be paid next month. Indicate the effect of each transaction on the accounting equation by: 1. Accounting equation element type: (A) assets, (L) liabilities, (OE) owner's equity, (R) revenue, and (E) expense 2. Name of accounting equation element. 3. The amount of the transaction. 4. Indicate the direction of change in the account that is affected. Note: Each transaction has two entries. Enter all amounts as positive numbers. Entry Entry Accounting Accounting Name of Name of Equation Increase or Equation Increase or Accounting Accounting Element Type Element Type Amount Decrease Amount Decrease Equation Element Equation Element (1) (3) (4) (1) (3) (4) (2) (2) Simpson Auto Body Repair purchased $19,202 of Machinery. The company paid $3,819 in cash at the time of the purchase and the remainder was purchased on account to be paid in four monthly installments. a. How will the purchase affect the accounting equation? liabilities by $ total assets by a net amount of $ and b. How will the payment of the first monthly installment affect the accounting equation (ignore interest)? assets by $ liabilities by $ and

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts
Section: Chapter Questions
Problem 1PB
See similar textbooks
icon
Related questions
Question
Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May: 1. Received cash from owner as additional investment, $55,000. 2. Paid creditors on account, $7,000. 3. Billed customers for services on account, $2,565 4. Received cash from customers on account, $8,450. 5. Paid cash to owner for personal use, $2,500 6. Received the utility bill, $160, to be paid next month. Indicate the effect of each transaction on the accounting equation by: 1. Accounting equation element type: (A) assets, (L) liabilities, (OE) owner's equity, (R) revenue, and (E) expense 2. Name of accounting equation element. 3. The amount of the transaction. 4. Indicate the direction of change in the account that is affected. Note: Each transaction has two entries. Enter all amounts as positive numbers. Entry Entry Accounting Accounting Name of Name of Equation Increase or Equation Increase or Accounting Accounting Element Type Element Type Amount Decrease Amount Decrease Equation Element Equation Element (1) (3) (4) (1) (3) (4) (2) (2)
Transcribed Image Text:Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were completed by Daniels Company during May: 1. Received cash from owner as additional investment, $55,000. 2. Paid creditors on account, $7,000. 3. Billed customers for services on account, $2,565 4. Received cash from customers on account, $8,450. 5. Paid cash to owner for personal use, $2,500 6. Received the utility bill, $160, to be paid next month. Indicate the effect of each transaction on the accounting equation by: 1. Accounting equation element type: (A) assets, (L) liabilities, (OE) owner's equity, (R) revenue, and (E) expense 2. Name of accounting equation element. 3. The amount of the transaction. 4. Indicate the direction of change in the account that is affected. Note: Each transaction has two entries. Enter all amounts as positive numbers. Entry Entry Accounting Accounting Name of Name of Equation Increase or Equation Increase or Accounting Accounting Element Type Element Type Amount Decrease Amount Decrease Equation Element Equation Element (1) (3) (4) (1) (3) (4) (2) (2)
Simpson Auto Body Repair purchased $19,202 of Machinery. The company paid $3,819 in cash at the time of the purchase and the remainder was purchased on account to be paid in four monthly installments. a. How will the purchase affect the accounting equation? liabilities by $ total assets by a net amount of $ and b. How will the payment of the first monthly installment affect the accounting equation (ignore interest)? assets by $ liabilities by $ and
Transcribed Image Text:Simpson Auto Body Repair purchased $19,202 of Machinery. The company paid $3,819 in cash at the time of the purchase and the remainder was purchased on account to be paid in four monthly installments. a. How will the purchase affect the accounting equation? liabilities by $ total assets by a net amount of $ and b. How will the payment of the first monthly installment affect the accounting equation (ignore interest)? assets by $ liabilities by $ and
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS